Marketing System of Ragi in the Eastern Dry Zone of Karnataka: A Multi-Channel Analysis

Abstract

The marketing system of finger millet (ragi, Eleusine coracana L.) in the Eastern Dry Zone of Karnataka operates through different channels that vary in the number of intermediaries involved, marketing costs, and overall efficiency. Although ragi is an important staple crop that contributes significantly to food and nutritional security in dryland areas, few studies have examined the comparative efficiency of alternative marketing channels. The present study evaluated the performance of three major ragi marketing channels in the region: Channel-I (Producer–Commission Agent–Wholesaler–Retailer–Consumer), Channel-II (Producer–KFCSC Procurement Centre–Consumer), and Channel-III (Producer–Village Trader–Wholesaler–Retailer–Consumer). Primary data were collected during April–May 2024 from 90 farmers and 24 market intermediaries. Marketing efficiency was analysed using Acharya’s modified marketing efficiency approach and Shepherd’s index. The results indicated clear differences among the channels in terms of price spread, the producer’s share in the consumer’s rupee, and marketing efficiency. Among the three channels, Channel-II, involving the Karnataka Food and Civil Supplies Corporation (KFCSC) procurement centres, performed best. It recorded the highest marketing efficiency, at 14.88 using Acharya’s method and 15.88 using Shepherd’s index. This channel also had the lowest price spread of Rs. 251.50 per quintal and the highest producer’s share in the consumer’s rupee, at 93.70 per cent. By contrast, Channel-I, which involved commission agents and wholesalers through the APMC system, was the least efficient. It had the highest price spread of Rs. 787.00 per quintal, the lowest producer’s share of 80.77 per cent, and a marketing efficiency value of 4.20. Channel-III, in which village traders acted as intermediaries, showed moderate performance, with a marketing efficiency of 4.43, a price spread of Rs. 732.50 per quintal, and a producer’s share of 81.57 per cent. Marketing costs were also highest in Channel-I, at Rs. 411.50 per quintal, whereas Channel-II incurred the lowest marketing cost, at Rs. 251.50 per quintal. The findings indicate that the KFCSC procurement channel was more efficient than the other marketing channels considered. Institutional procurement systems may enable farmers to receive a larger share of the consumer price by reducing the number of intermediaries, lowering transaction costs, and providing greater price assurance. Therefore, strengthening KFCSC procurement facilities, expanding procurement centres, ensuring prompt payment to farmers, and encouraging direct marketing systems may improve ragi marketing efficiency and farmer income in Karnataka.